Wholesaling By the Numbers?

Question

Okay so I have the basic wholesaling steps down.

1.Find a Property
2.Put it under contract using a PSA
3.Get it inspected
4.Get rehab estimate
5.Calculate the gross income (rent)
6.Calculate the PITI
7.Get the estimated ARV
8.Advertise to buyers list
9. Assign contract to your end buyer using an assignment contrat
and seperate PSA

But I think I'm having problems with step 7, how do I find out the estimated ARV? Is it throuh an appraisal? And if so, when do I get the appraisal?

Jon Holdman · Answer

PSA = Purchase and Sale Agreement PITI = Principal, interest, taxes & insurance. I.E., "your payment" on a mortgage loan.

Chevis Duncan · Answer

guys, what is PSA and PITI?

Andrew Massaro · Answer

I agree, Curt. In fact, I'd put #9 at #1. Not the assigning the contract part, but finding the buyer(s) should come first... these days.

Tiara Murray · Answer

Thanks guys.

Andrew Massaro · Answer

You can get an appraisal. That costs money, though. Determining ARV is tough right now, with the housing market being so dynamic. My advice is to know your market.

You can do research on the internet, but the information is inconsistent. I ask the seller what other houses in their neighborhood, similar to theirs, is selling for. You can also get on the email lists of other wholesalers. See what they are selling their wholesale property for, and what they list as the ARV.

If you can nail down a price/sq ft for the various areas of your town, you have a leg up on your competition. For example, about 3 years ago, houses in South St Pete went for about $100/sq ft. So, if a website, like realquest, stated otherwise, I knew it was incorrect.

Curt Davis · Answer

Tiara,

your #2 actually needs to be #7. You should only lock up a property after you have figured everything else out. You do not want to waste your time locking up a property only to find out the numbers dont work.

Wholesaling By the Numbers?

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